Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer quickly (sorry important) The owner of a local restaurant needs to decide between two lease options as presented below for lie next 3
Please answer quickly (sorry important)
The owner of a local restaurant needs to decide between two lease options as presented below for lie next 3 years. Option 1: A fixed fee of $40,000 plus 4% of the total sales. Option 2: A fixed fee of 560.000 plus 2% of the total sales. The business is recent y crated; and the owner's projected sales will mach $700.000 in the third year: and it will grow by 10 per year for the next several years. Which one of the following would you recommend, and why? More information is needed to solve for the answer. Euther option does not make diference because the amount of revenues at $1,000,000 is the thirfernece Point. Thus, it docant nather the fourtineserwith the Optiken 2 the second tease continatStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started